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SEGMENT REPORTING
6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
Segment reporting is based on the “management approach,” following the method that management organizes the company’s reportable segments for which separate financial information is made available to, and evaluated regularly by, the chief operating decision maker in allocating resources and in assessing performance. Cadence operates as one operating segment. Cadence’s chief operating decision maker (“CODM”) is its CEO. The CODM makes decisions on resource allocation and assesses performance of the business based on Cadence’s consolidated results, including net income.
For additional information on Cadence’s revenue, including the nature and timing of revenue from contracts with customers, see Note 2 in the notes to condensed consolidated financial statements. The following table presents revenue, significant expenses and net income for the three and six months ended June 30, 2025 and June 30, 2024:
Three Months Ended
Six Months Ended
 June 30,
2025
June 30,
2024
June 30,
2025
June 30,
2024
 (In thousands)
Revenue
$1,275,441 $1,060,681 $2,517,807 $2,069,784 
Costs and Expenses:
Salary, benefits and other employee-related costs521,608 463,363 1,064,265 939,250 
Stock based compensation
118,325 87,569 225,938 175,698 
Manufacturing costs
101,480 61,048 183,149 120,709 
Facilities and other infrastructure costs
47,277 42,465 91,115 84,119 
Depreciation and amortization
53,676 50,646 106,592 87,202 
Professional services
37,684 38,761 70,143 77,675 
Loss related to contingent liability(1)
128,545 — 128,545 — 
Restructuring
47 (33)(62)247 
Other segment items(2)
(16,778)(2,868)5,957 (44,069)
Interest income(25,978)(8,885)(52,200)(18,397)
Interest expense28,948 12,905 58,066 21,597 
Provision for income taxes120,556 86,190 202,669 148,590 
Net income$160,051 $229,520 $433,630 $477,163 
_____________
(1) For information regarding the loss related to a contingent liability, see Note 14 in the notes to condensed consolidated financial statements.
(2) Other segment items include direct costs for advertising, marketing events, travel, entertainment, bad debt and other operating expense categories that are not considered significant individually. It also includes non-operating expenses such as gains and losses on investments, foreign currency and other non-operating expenses that are not considered significant individually.
Outside the United States, Cadence markets and supports its products and services primarily through its subsidiaries. Revenue is attributed to geography based upon the country in which the product is used, or services are delivered. Long-lived assets are attributed to geography based on the country where the assets are located.
The following table presents a summary of revenue by geography for the three and six months ended June 30, 2025 and June 30, 2024:
 Three Months Ended
Six Months Ended
 June 30,
2025
June 30,
2024
June 30,
2025
June 30,
2024
 (In thousands)
Americas:
United States$591,265 $507,169 $1,160,232 $942,692 
Other Americas39,072 11,660 68,684 39,007 
Total Americas630,337 518,829 1,228,916 981,699 
Asia:
China120,717 127,809 260,098 245,038 
Other Asia238,225 197,928 478,737 406,459 
Total Asia358,942 325,737 738,835 651,497 
Europe, Middle East and Africa (“EMEA”)
200,186 152,521 395,929 321,577 
Japan85,976 63,594 154,127 115,011 
Total$1,275,441 $1,060,681 $2,517,807 $2,069,784 
The following table presents a summary of long-lived assets by geography as of June 30, 2025 and December 31, 2024:
 As of
 June 30,
2025
December 31,
2024
 (In thousands)
Americas:
United States$431,311 $412,339 
Other Americas10,774 7,437 
Total Americas442,085 419,776 
Asia:
China26,349 22,929 
Other Asia103,603 83,951 
Total Asia129,952 106,880 
EMEA
77,587 73,551 
Japan3,854 4,183 
Total$653,478 $604,390